ABSTRACT
This chapter analyses major research contributions and provides a systematic view of some of the most prominent findings. It discusses the origin of odd pricing, the explanations for the effect of odd prices, the research strides and the scope of the research on odd prices. J. Huston and N. Kamdar confronted the "price illusion" hypothesis and tried to reconcile just-below pricing with consumer rationality. The odd pricing tactics reflect the preference function, as consumers dislike losses more than they value gains relative to a reference price. K. Gedenk and H. Sattler underlined that the pricing behavior of retailers is based not only on tradition, but also on economic reasoning. E. Ginzberg presented one of the first studies relative to the impact of customary prices on demand in a one-page report published in 1936. The goal of the experiment conducted by a large American mail-order company was to study the effects of odd and even pricing on demand.
